LOCAL BODY ECONOMY.

New Zealand Herald, Volume LXVIII, Issue 20867, 8 May 1931, Page 14

LOCAL BODY ECONOMY.

AUCKLAND QUESTIONNAIRE. VARIOUS REPLIES RECEIVED. PROPOSED AMALGAMATIONS. Economies effected by Auckland local bodies in an endeavour to cope with the financial depression arc set out in a number of replies received by the Auckland Chamber "of Commerce to a questionnaire drawn up by tho Associated Chambers of Commerce. They were asked:—(l) What, economies have been put. into effect ? (2) Do you consider there are too many local bodies in New Zealand ? (3) In what directions do you think reductions could bo made ? Of the local hodies so questioned, sixsupplied the information desired, the City Council intimated that tho questionnaire had been referred to the Finance Committee, arid five merely received it. The town clerk of Devonport wrote stating that his council was of the opinion that the Associated Chambers of Commerce wore #oing beyond their province in taking up matters of local body administration and suggested that their energies bo directed to matters more pertaining to commerce, such as currency and exchange. Local hodies were experiencing considerable difficulty at present in connection with tho exchange rate on London. Power and Harbour Boards.

The Auckland Elect.ric-Powor Board replied that as tho whole of its expenditure embraced only necessary works it had not been curtailed. Jfc would be possible to delay some of the works, but that course would only accentuate unemployment. Tho board considered that any work which could be economically undertaken should bo put in hand and that it should be carried out by employing additional labour. By working tho whole of this section of the staff, including the additional labour, one week on and one week off, about double the number of men could be employed. Moreover, by paying the usual wage rates the Unemployment Board's funds were relieved. The Power Board had in mind further reductions to consumers, but tho difficult position in regard to Arapuni had recently necessitated further capital expenditure. The Auckland Harbour Board reported that no increase had been made in the board's dues or charges since 1926, with tho exception of the ferry steamers in 1929, consequent upon the provision of improved facilities. On the contrary, during tho past few years reductions had been made jn jjilotago dues, storage on warehoused goods and goods for transhipment. The .board's expenditure had fallen from £158,099 in 1927-8 to £144,851 in 1929-30. The number of men employed had fallen in tho same period from 635 to 492.

Scope ol Proposed Commission. Tho Auckland Fire Board advised that tho year's estimates had been reduced by £BOO and if the Arbitration Court made a general order for a reduction of 10 per cent, on all awards a further £IOOO would be saved. Members of the board believed that, as far as Auckland was concerned, a considerable saving in fire protection would bo effected by the creation of a Metropolitan Fire Board, which should absorb all the firo services in Auckland city and Suburbs. Several replies wero in favour of a further merging of local bodies to effect economies, but tho opinion was by no means, unanimous. Tho One Tree Hill Borough Council quoted the findings of British and American commissions which claimed that the ideal size for a central city was 90,000 inhabitants and that when that population was exceeded efficiency declined and administrative costs rose. The Mount Eden Borough Council was also against amalgamations. "Itis a mistake to suppose that the amalgamation of authorities leads to economy in overhead expenses," wrote the town clerk. " It may sometimes do so, but does not as a rule."

It was decided to write to tho Prime Minister suggesting tho widening of tho order of reference of the suggested Local Bodies' Commission so as to cover not only investigations of the incidence of local taxation and the possibilities of further economies, but also to examine the possibilities of some of the smaller contiguous local authorities being compulsorily amalgamated.